Coming off of a solid third quarter, Acushnet Company (Titleist and Footjoy) President/CEO David Maher is bullish on his company’s growth, as well as the continued growth of the golf industry.
“We have more golfers. People are prioritizing the sport differently in their lives. People are working differently. And I think the game is benefiting from – it’s realizing the benefits of its exercise components, its outdoor components, its socialization components, all that goes along with it,” Maher recently told Wall Street analysts. “So the sport, obviously, (is) very, very healthy. In the U.S. and around the world, I’ve made the point a few times that I think we’re five years running where the golfer base has grown fastest-growing segments, juniors women.”
The Acushnet Co., reported Q3 revenue at $593 million, an increase of six percent compared to Q3 of 2022. Earnings were $57.3 million, a nearly 11 percent increase vs. the same period in ’22. For the nine months, Acushnet reported revenue increased to $1,969.0 million (an eight percent increase) while earnings 13 percent to $225 million.
The company expects its full-year 2023 net sales in the range of $2,350 to $2,400 million – a healthy increase over ’22.
“We’re focused on the dedicated player,” Maher said. “We tend to be a bit more focused in our product approach and our messaging approach. As we say routinely, ‘they’re pretty resilient, they’re pretty passionate and in good times, they play and think about equipment.’ And we’re seeing that in our results, not only this year, but over the past several years.
“There are some other factors that are playing out as well, and that is the professional game – vibrant, alive and well. We’re seeing a return of corporate spend on golf that went very quiet during the pandemic years, but we’re seeing corporate spend, whether it’s through outings, whether it’s through promotion of events pick up again. That’s a healthy positive. And then more broadly, the game, the sport facilities, whether it’s golf courses, whether it’s golf specialty retailers have had a pretty good run these last few years. And they’re taking their successes in reinvesting in the future.”
Over the past couple of years, Maher said, the game has done a nice job of “reinvesting in itself and understanding tha there has to be evolution.”
There has to be, Maher said, some adaptation in order to continue the momentum the industry – and game – is experiencing.
“So, all in all, we feel really good about where the sport is today and the fundamentals are very strong. I would put an asterisk next to rounds of play this year, they’re going to be up about four percent. That’s with some real tough weather around the U.S., which says people are avid, people are committed and they’re utilizing the capacity that exists within golf courses at a higher level than they typically have.
But a lot of positives and certainly, we’re aware of all the macro concerns in the marketplace in the world, and we factor those into our calculus and our forward thinking, as well. But net-net, the sport is in a really good spot.”
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